Sony's Market Cap Rises To Over 50B (v2.0)

[VideoGameAccountant]

Lawlight said:

VideoGameAccountant said:
Here is the stock price if anyone is interested.

https://www.google.com/#q=Sony+stock+price

For whatever reason, the stock tends to go up in the summer and fall in the winter. It's been steadily increasing for the last few years and Sony had decent earnings in 2015 and 2016. From what I'm reading, gaming is driving the stock, and I'd agree. However, with that means the company is more volatile as the console market is all over the place. Even Sony rode high from PS2, flopped with PS3 (which almost took down the company) and is doing well with PS4.

Sony is hardly competitive in any other industry its in, so gaming is what will drive the stock. We'll have to come back in a year or two and see how the company does from there.

The console market is not all over the place - they just messed up with the PS3. Not making extraordinary decisions returned things to normal with the PS4.

Also, you're forgeting that their life insurance has been their biggest division for years now. Their music and TV division are very strong too. 

Look at Nintendo. They struggled with the Gamecube, succeeded with the Wii and flopped with the Wii U. Microsoft was the same way with the 360 being a modest hit and then faltering. And look at the graveyard of companies that didn't make it in this industry (Atari, Sega, Hudson). Videogames are volatile. Who is to say that Sony won't trip up again with the PS5? The only company that has been consistently successful is Nintendo in the handheld business and even the sales figures are volatile.

You mentioned life insurance, but Sony's bread and butter was consumer electronics, not life insurance. Sony's TVs are beaten by Samsung and LG, Sony lost its music business from the iPhone and it's phones line is nothing meaningful. Even Sony's movie business is on the rocks. Cameras are doing well, but Sony's business is dependent on demand from phone manufacturers, and they could find another alternative if need be. Video Games is the only industry they are really competitive in. It makes up about 19 percent of sales as of Q2 2016 (haven't seen more updated number). However, it's the most volatile industry they are in as well. PS4 is doing well know, but Sony will eventually have to release the PS5. And it will be doing it as PC gaming increases and as Nintendo Switch hits its stride.